Low Inflation – It’s a Global Phenomenon

Despite persistent worries about “money printing” and the Fed’s actions, inflation has remained benign in the USA. But you might be surprised to notice that this isn’t merely a US phenomenon. It’s actually a global trend.

Figure 1 shows an overview of global inflation rates. I’ve taken 5 major regions/countries to show the recent downward trend in inflation rates. Japan is leading the way into a full blown deflation at -0.9% while the UK tops the chart at 2.8%. The USA rounds out the middle of the pack at 1.5% and is expected to show further signs of disinflation in the coming months.